BOQ launches digital platform to improve turnaround times

BOQ stated that its new “Digital Acceptance Process”, which is an online delivery and signing mechanism, would provide customers with the opportunity to electronically receive and sign their home loan documents at their own convenience.

“We look forward to the improved experience and reduced turnaround times to be delivered from this initiative, as we work to improve the BOQ Broker service offering to our valued business partners,” BOQ’s head of broker, Natasha Kelso, said.

The non-major recently acknowledged that complexities in the home loan application process have contributed to weak home lending growth.

In its financial results for the first half of the 2019 financial year (1H19), BOQ reported negative mortgage growth of $248 million, down from positive growth of $11 million in 1H18, with its overall portfolio dropping to $24.7 billion.

The fall was driven by a $717 million contraction in settlements through BOQ’s retail bank, which was offset by a $469 million rise in home loan volumes through its subsidiary, Virgin Money Home Loans.

BOQ’s chief financial officer, Matt Baxby, said: “We have a program of work to address this and streamline the experience for brokers and customers.”

Mr Baxby also acknowledged the contribution of the broker channel in driving settlement growth through Virgin Money Home Loans. 

“We did see strong broker origination through Virgin Money, that’s what led to that slight uplift,” he noted.

The bank reported that 17 per cent of mortgages in its portfolio were originated by the broker channel, up from 13 per cent in 1H18, while the proportion of its home loan flows through the broker channel remained stable at 30 per cent.

[Related: BOQ’s sharp mortgage slump offset by broker growth]